GPG's Gibb's declines comment on reports of possible Hanover bid

Thursday 26th November 2009

Guinness Peat Group director Tony Gibb declined to comment on reports the investment group is considering making a rival bid for the financial assts of Hanover Finance and its affiliate United Finance.

“I’ve been reading in the papers about how were supposed to be interested in it [Hanover] but it seems that everyone’s in on it but me” he told BusinessWire. “I don’t mean to be difficult, but I’m not going to comment on that at all I’m afraid.”

Rural services and finance firm Allied Farmers submitted an all-stock proposal last week worth about $400 million to acquire assets of Hanover and United Finance. Hanover said this week it hasn’t received a substantive alternative proposal to Allied’s. Fairfax Media and the NZ Herald have reported on the prospects of a new proposal, without citing any sources.

Hanover’s high-profile owners, Mark Hotchin and Eric Watson would exit under Allied’s proposal, which needs approval of investors in the ailing finance company, its trustee and shareholders of Allied. Chairman John Loughlin has to convince Allied’s shareholders that taking on a loan book that’s 80% bad offers the best prospects for the company’s economic growth and their wealth.

The proposal follows Hanover’s announcement that investors would get 70 cents in the dollar at best, after convincing them last year to agree to a moratorium on payments.

Gibbs wouldn’t directly deny the media reports of GPG’s interest. He has been kept busy the past few weeks, in his role as chairman of Turners & Growers, driving its campaign to break down the monopoly of kiwifruit export body Zespri. That’s included lobbying foreign governments to pressure the key administration to end Zespri’s control of exports of the fruit.

Letters from Zespri chief executive Lain Jager to Trade Minister Tim Groser accused GPG and Turners & Growers of lobbying the U.S. to get rid of its single desk kiwifruit marketing status, Fairfax Media reported on its Stuff website.

Shares of GPG were unchanged at 81 cents. Allied was steady on 31 cents. Turners & Growers last traded at $1.50.

Businesswire.co.nz

Comments from our readers

No comments yet